Waigaoqiao to make China's first luxury liner

When domestic shipbuilders are struggling to make ends meet due to industry downturn, Waigaoqiao Shipbuilding Co Ltd has decided to build China's first luxury cruise liner. In doing so, it has announced itself on the global cruise market.
China CSSC Holdings Ltd, a listed arm of China State Shipbuilding Corp, said in a statement on April 16 that its subsidiary Waigaoqiao Shipbuilding is about to set up a cruise liner development company in Shanghai along with Guangzhou Shipyard International Co Ltd and two ship design institutes.


The new company will undertake research, design and development of cruise liners and related facilities, it said.


The joint venture will be registered in China (Shanghai) Pilot Free Trade Zone in Pudong New Area, the 21st Century Business Herald reported.


Construction of the first cruise ship will kick off in 2017, and will be delivered by 2021, according to Chen Gang, vice-president of Waigaoqiao Shipbuilding.


The company's new foray follows the rapid expansion of the global cruise market.


It is an industry currently dominated by the world's leading shipyards in Italy, Germany and France. But their limited supply has been unable to meet the global market's demand.


Chinese cruise lovers reached 1.11 million in 2015, up 50 percent year-on-year. Last year was the first time their number surpassed the 1-million mark, according to the 2015 China Cruise Industry Development Report.


As many as 4.5 million Chinese will go on cruises by 2020, meaning 40 cruise ships will homeport in China, said Wu Zhenglian, a cruise design expert from a research institute under CSSC.


Some 200 large-sized cruise ships are in operation across the world now. Shipyards can produce only eight such new vessels every year whereas the demand is for 13.


The article transsshipment from China Daily